Flying J B Case Study Solution and Analysis
Introduction
Flying J B Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting info, processing information and communication services. Major organisation segments of the business include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its major products consist of books, regulars, online media, exhibits, research reports and so on. Flying J B Case Study Help has become a specialized details service provider and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Flying J B Case Study Solution has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Flying J B Case Study Solution has certain strengths that can be utilized to decrease the risks, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Flying J B Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong monetary position enables the company to think about a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which might increase restrictions for the company in executing its development program. The weaknesses of Flying J B Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, impacting Flying J B Case Study Help also, but the development might be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has positioned particular risks to Flying J B Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Flying J B Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the market together with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be determined. However, the total monetary performance of the company might be analyzed by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Flying J B Case Study Solution is growing and the company is rather effective in attracting a large number of consumers at a possible cost.
In addition to it, the second chart which reveals the annual growth in the Flying J B Case Study Help total properties, reveals that the business is quite efficient in adding value to its possessions through its incomes. The growth in possessions reveals that the total value of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis regarding the distribution of total profits of the business. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sections with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the performance of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Flying J B Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies connected to the import of books impact the general company at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading helpful products etc. China has the greatest population worldwide with a high population development, showing the increasing variety of consumers of the Flying J B Case Study Help. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Flying J B Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. However, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the digital libraries on specific sites. The changing consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Flying J B Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Flying J B Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and second in numerous market sectors, with a major concentrate on educational publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Flying J B Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Flying J B Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant solution to avoid the decreasing market growth. The business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must initially gathers the data associated with the consumer demand, the potential markets, the federal government guidelines and the data connected to the competitors presented in the market. After that, the company should choose one prospective segment for its preliminary offering. It ought to gather research study that how it might distinguish its digital publishing from the existing rivals' items. After all the actions above the company need to opt for the preliminary offering. If the preliminary offering shows a success, the company should go for the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a risk to the business's long term presence, however the circumstance can be managed by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
